The Other Energy Crisis

A Leading Ideas Article

As nuclear energy becomes a viable alternative to carbon-based fuels, security is a vital concern. Here’s how private markets might be able to help.

"The paradox of nuclear energy, then, is that from an environmental and economic perspective, it's beneficial for as many countries as possible to have access to enriched uranium for energy; but in terms of security, as few countries as possible should have enriching capacity.

The International Atomic Energy Agency (IAEA) may have one answer to the dilemma of how to ensure the supply of nuclear energy while minimizing nuclear proliferation: It is establishing an enriched uranium fuel bank to guarantee nondiscriminatory availability of that material. Although the IAEA and governments are grappling with many aspects of this emerging energy security crisis, no one is discussing a complementary initiative that could leverage the insurance and finance industries—and therein lies a unique opportunity. One solution to the dual security problem could be an innovative partnership between these industries and governments that would create the world's first international nuclear fuel insurance fund."